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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
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Can you buy a car with a credit card? Here’s what you need to know to drive a hard bargain
Augusta Stone is a credit cards writer for TPG. She joined the TPG team in 2023 and is excited to take points and miles beginners with her on a journey toward maximizing rewards.
also contributed to this story
January 27, 2025 • 8 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.
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Quick summary
It is possible to buy a car with a credit card, but not all dealerships accept this method due to processing fees.
Using a card for a car purchase can help earn rewards or meet spending requirements, but you should ensure you can pay the balance in full to avoid costly interest charges.
Dealers are more likely to allow partial payments with a card, such as for a down payment, rather than the full purchase price.
Special programs exist that connect buyers to dealerships willing to accept cards for at least part of the transaction, streamlining the process for those who prefer not to negotiate.
What to consider
Dealerships may add processing fees (up to 3%) to your total if you pay with a card, potentially reducing the value of any rewards earned.
Not all dealers will accept cards for large amounts, so you may need to negotiate or split payments across multiple cards.
Introductory offers or spending thresholds can make using a card for a car purchase more appealing, but always confirm eligibility and terms before proceeding.
What you'll miss from the article
Detailed strategies for negotiating with dealerships and maximizing rewards when using a card for a car purchase.
Generated by AI with support from our editorial team.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
Using a travel credit card to earn rewards for purchases you’d be making anyway is a great way to defray the cost of your next vacation, as long as you pay off your balance in full every month.
In the past, TPG readers have asked if you can use a credit card to buy a car. The short answer is: Yes, but it’s not exactly that simple. There are a handful of factors to consider before you pull out the plastic to pay for your next ride.
Before you swipe or tap, make sure it’s a good deal because getting a good price on the car is more important than earning rewards for the purchase. However, using credit cards for large purchases is a good way to stack up rewards, so let’s look at when it makes sense to do just that.
Before you put a five-figure purchase on your credit card, you’ll want to have the cash available to pay off your card in full. Otherwise, you’ll end up paying an interest rate many times higher than what it would cost to finance the vehicle.
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The one exception is opening a card with a 0% annual percentage rate offer. Be sure that the 0% offer applies to new purchases because balance transfers usually incur fees (3% to 5%).
Buying a car with a credit card might take some legwork. For example, former TPG contributor Richard Kerr paid for a $40,000 car with The Platinum Card® from American Express, but he haggled with five dealerships before he found one willing to play ball and allow him to use his card for the full purchase price.
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However, if you’re charging a smaller amount on your card (to pay for the down payment or a portion of the car), you’ll find more dealers willing to accept that deal.
How to negotiate using a credit card for a car purchase
One strategy is to negotiate a price you’d be willing to pay for the car before you mention paying with a credit card, which, in turn, might invite another round of negotiations.
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I’m more comfortable going for the low-hanging fruit (charging a portion of the payment). It can be worth it to pay some extra fees if you’re going to earn a big introductory bonus that’s worth many times what you’d pay. You might even be able to split a large payment across multiple cards and meet several minimum spending requirements at the same time.
If you want to keep it simple, you should take advantage of the American Express Auto Purchasing Program. This program connects cardmembers to 7,000 dealers who are willing to accept an American Express card for at least $2,000 of the purchase price. It's a good choice if you don’t want to bother with haggling at the dealership.
Once you have your dream car in sight, you’ll want to get the most bang for your buck. Usually, that means making the purchase on a newly opened card so you can earn its introductory bonus offer.
It’s a solid choice, but with The Business Platinum Card® from American Express new cardholders can find out their offer and see if they are eligible for as high as 300,000 bonus points after spending $20,000 on purchases in the first three months of card membership. Welcome offers vary, and you may not be eligible for an offer.
A large purchase is a great way to earn the welcome bonus. The Business Platinum Card also earns 2 points per dollar spent on eligible U.S. purchases of $5,000 or more (on up to 2 million bonus points per calendar year).
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With the Chase Freedom Unlimited® (see ) or the Ink Business Unlimited® Credit Card (see ), you earn an unlimited 1.5% cash back on purchases. Although these cards are technically cash-back credit cards, the cash back can be earned as Chase Ultimate Rewards points, meaning they can be redeemed for various rewards at a rate of 1 cent each.
Buying a car with a credit card can be an excellent opportunity to earn tons of bonus points or hit spending thresholds that unlock rewards, such as free night awards.
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But not every dealer will accept credit cards, and those who do will charge you more to cover their card processing fees.
Getting the best deal and earning rewards at the same time can take a good amount of negotiating.
If haggling for a car isn’t your thing, make it easy on yourself by taking advantage of Amex's Auto Purchasing Program. The program connects American Express cardholders to 7,000 dealers who allow customers to put at least $2,000 of their car purchase on their Amex card.
Some of these dealers will even agree to put the entire purchase price on your card, but again, it’s likely they will add the extra card fees to the final price. But paying a bit extra in fees can be worth it if you’re earning rewards that are worth much more than the fees.
